How Streaming Is Changing Music (Again)
As another year of the streaming era comes to a close, head of content licensing at Pandora and an assistant professor at Harvard take a closer look at how digitization has further shaped the industry. From shorter albums to different strategic options for artists, these changes are then used to predict what's to come.This article originally appeared on Harvard Business Review
Beyoncé made history with her album Lemonade, which was streamed a record 115 million times in its first week. Just one week later, Drake broke that record when his album Views was streamed 245 million times. The age of streaming music has arrived in full force, displacing both physical sales (e.g., CDs) and downloaded songs (e.g., iTunes). As streaming has taken hold, U.S. album sales, both physical and digital, have plummeted from a peak of 785 million in 2000 to just 241 million in 2015. The change comes from people switching from purchasing full albums, either online or offline, to listening to individual songs through a streaming platform such as Spotify, Tidal, or Pandora (where one of us works, full disclosure).
This shift has the potential to reshape both the music people listen to and the music that artists create. For example, will the concept of albums survive in the age of streaming, or will artists simply release their best singles? (History buffs will note that the concept of recorded albums is itself relatively new.)...